Correlation Between Brisa Bridgestone and Aksa Enerji
Can any of the company-specific risk be diversified away by investing in both Brisa Bridgestone and Aksa Enerji at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Brisa Bridgestone and Aksa Enerji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brisa Bridgestone Sabanci and Aksa Enerji Uretim, you can compare the effects of market volatilities on Brisa Bridgestone and Aksa Enerji and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Brisa Bridgestone with a short position of Aksa Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brisa Bridgestone and Aksa Enerji.
Diversification Opportunities for Brisa Bridgestone and Aksa Enerji
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Brisa and Aksa is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Brisa Bridgestone Sabanci and Aksa Enerji Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksa Enerji Uretim and Brisa Bridgestone is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Brisa Bridgestone Sabanci are associated (or correlated) with Aksa Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksa Enerji Uretim has no effect on the direction of Brisa Bridgestone i.e., Brisa Bridgestone and Aksa Enerji go up and down completely randomly.
Pair Corralation between Brisa Bridgestone and Aksa Enerji
Assuming the 90 days trading horizon Brisa Bridgestone Sabanci is expected to generate 1.49 times more return on investment than Aksa Enerji. However, Brisa Bridgestone is 1.49 times more volatile than Aksa Enerji Uretim. It trades about 0.38 of its potential returns per unit of risk. Aksa Enerji Uretim is currently generating about 0.23 per unit of risk. If you would invest 8,020 in Brisa Bridgestone Sabanci on September 2, 2024 and sell it today you would earn a total of 1,920 from holding Brisa Bridgestone Sabanci or generate 23.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brisa Bridgestone Sabanci vs. Aksa Enerji Uretim
Performance |
| Timeline |
| Brisa Bridgestone Sabanci |
| Aksa Enerji Uretim |
Brisa Bridgestone and Aksa Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brisa Bridgestone and Aksa Enerji
The main advantage of trading using opposite Brisa Bridgestone and Aksa Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brisa Bridgestone position performs unexpectedly, Aksa Enerji can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aksa Enerji will offset losses from the drop in Aksa Enerji's long position.| Brisa Bridgestone vs. Aksa Akrilik Kimya | Brisa Bridgestone vs. Kordsa Global Endustriyel | Brisa Bridgestone vs. Tofas Turk Otomobil | Brisa Bridgestone vs. Arcelik AS |
| Aksa Enerji vs. Aksa Akrilik Kimya | Aksa Enerji vs. Turkiye Sise ve | Aksa Enerji vs. Hektas Ticaret TAS | Aksa Enerji vs. SASA Polyester Sanayi |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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